Transparency initiative annual report

2.6.7. State-Owned Enterprise activities in foreign markets

Expansion of SOCAR activities in foreign markets is indicated in the tables below:

Projects ^52	Progress in 2015
Southern Gas Corridor
The Southern Gas Corridor (SGC) involves four projects: “Shah Deniz-2” Phase; “South Caucasus Pipeline” (SCP); “Trans-Anatolian Natural Gas Pipeline” (TANAP); and “Trans-Adriatic Pipeline” (TAP). Georgia, Turkey, Greece, Bulgaria, Albania and Italy are key players involved in SGC project.
“Trans-Anatolian” natural gas pipeline (“TANAP”) is intended for transportation of gas from “Shah Deniz” field via Georgia-Turkey-Greece-Albania and Italy route. It is considered as of the most successful projects implemented within Turkey and Azerbaijan cooperation, playing important role in global energy sector.		During five years, the project that is considered to be implemented will be realized in some phases and the first phase will be completed in 2018. The pipeline capacity will be reached to 16 bln m^3 in 2020, 23 bln m^3 in 2023 and 31 bln m^3 in 2026. First of all, from 16 bln m^3 Azerbaijani gas 10 bln. m^3of will be deleieverd to Europe and the rest 6 mlrd. m^3will be delievered to Turkey through TANAP pipeline. In accordance with Memorandum of Understanding signed in Ankara on 13 March 2015, the participating interests will be obtained by “Southern Gas Corridor” (58%), BOTAS (30%) and BP (12%).
The TAP project is intended to set the pipeline of estimated length of 870 kilometres which will be connected to TANAP pipeline at Kipo, i.e. on the border between Greece and Turkey. This pipeline is to transport natural gas from “Shah Deniz-2” field of Azerbaijan to Europe. Participating parties in the project are BP (20%), SOCAR (20%), Statoil (20%), Fluxys (19%), Enagas (16%) and Axpo (5%).		The construction of TAP pipline, the last European part of the “Southern Gas Corridor” is planned to start in 2016.
Participating parties in the pipline are BP (28,8%), Azerbaijan SCP (10%), “SGC Midstream” (6,7%), “Petronas” (15,5%), “LUKOIL” (10%), NICO (10%) and TPAO (19%).		In connection with activities of SCP 22 million US dollars was spent on operating expenses and 559 million US dollars on capital expenses in the first half of 2015.
DESFA
DESFA-(National Natural Gas System Operator S.A.) is a natural gas transmission system operator in Greece. On July 31, 2013 State Oil Company of Azerbaijan Republic was approved to obtain 35% of “Hellenic Petroleum SA” and 31% of State of Greece share portfolio in DESFA distribution company.		The main reason for the delay in privatization process of DESFA is the studies carried out by General Deroctarate for Competition of the European Comission for the transfer of a controlling stake in gas distribution to SOCAR. Greek state based on the principles of anti-monopoly offers 17% of SOCAR shares to be sold out to third party.

The information about foreign missions of SOCAR can be found in the “Sustainable development report” published by the company. ⁵³